In Brief - 2003-08-28

2003-08-28

Oil trader boosts exposure in EstoniaThe Lithuanian oil refinery Mazeikiai Nafta, which opened a trading housefor wholesale in oil products in Estonia, has ambitious plans for thefuture. Mazeikiai Nafta, which is owned by the Russian oil company Yukos,already controls around 70 percent of the petrol market and 15 percent ofthe diesel fuel market in Estonia.Tonu Paaro, chief executive officer of Mazeikiai Nafta Trading HouseEstonia, did not rule out that the strategic objective of the refinery is tobecome sole supplier of fuel to the Estonian market. He also said thatMazeikiai Nafta would conduct its wholesale in oil products only through theBaltic trading houses.Toomas Saks, president of the Estonian association of oil companies, saidthat the refinery could soon start dictating prices on the whole Estonianfuel market. This worries other fuel retailers as well as consumers who fearthat this may lead to a rise in prices. (Baltic Business News)

Swedish support for Lithuanian powerThe Swedish government has decided to grant close to 1 million euros ofsupport for the energy sector in Lithuania.This support is intended as partial financing for a new transformer stationwith demonstration features, whose purpose will be to supply electricity toa new sewage treatment plant in the city of Siauliai. The decision willallow for access to a secure electricity source for the sewage treatmentplant and provide modern technology in preparation for the futuremodernization of the Lithuanian electricity network."It is important for the sewage treatment plant in Siauliai to acquire asecure electricity supply. A more modern, more environmentally friendly andmore efficient electricity network for Lithuania, moreover, will be awelcome development. The government's decision will open the way for Swedishcompanies to share their considerable expertise," Swedish Minister JanKarlsson said. (BBN)

Forestry giant to enter Latvian marketOne of the biggest forestry enterprises, UPM-Kymmene, is getting ready toenter Latvian pulpwood market.According to Peka Rajala, deputy director of UPM-Kymmene's forestry affairs,the corporation intends to create a new company in Latvia from their newlyestablished Estonian daughter company UPM-Kymmene Forest with the purpose ofbuying raw materials for cellulose production units in Finland. Rajala addedthat the company wanted to ensure that the delivery of goods would beconstant and stable. Industry experts assume that the prices for pulpwoodwill rise due to market redivision.When asked whether the intentions of UPM-Kymmene might be affected by plansto build a cellulose factory in Latvia, Rajala hinted that UPM-Kymmene woulddevelop its plans in Latvia according to its own needs and does notpresently think that the Baltic Pulp cellulose factory will be implemented.(BBN)

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